How to Buy An Apartment With an FHA Loan
The Federal Housing Administration (FHA) loans are a very favorable option for those who want to buy duplex apartments or multifamily property in which they tend to live in one of the portions and let other parts of the building on rent. These loans are backed by a government guarantee and are offered through a network of government-approved banks and mortgage lenders.
These loans are attractive to the lenders as there is a guarantee by the government against default by the individual borrower. The FHA loans are very much appealing to those who are first time home buyers or for those who do not have a perfect credit score and for those who are not in a position to pay high down payments. The down payments are as low as 3.5% of the purchase amount.
These loans offer many advantages including
- Lower closing costs
- Very low down payment requirement
- Easy approval
So, when you apply for an FHA loan through an FHA approved bank or a mortgage dealer you can get your loan approved on the production of valid government documents as required by your loan processor.